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Ballot Voting Procedure - Proposed Amalgamation of the STXID (source portfolio) with the Satrix SA Inc AMETF
Satrix Managers (RF) Pty Ltd
Satrix Inclusion & Diversity ETF
Share code: STXID
ISIN: ZAE000300570
A portfolio in the Satrix Collective Investment Scheme in Securities,
registered as such in terms of the Collective Investment Schemes Control
Act, 45 of 2002
Ballot Voting Procedure - Proposed Amalgamation of the Satrix Inclusion
& Diversity ETF (source portfolio) with the Satrix SA Inc AMETF (target
portfolio)
This letter is important and requires your immediate attention.
The purpose of this letter is to inform you of the proposed amalgamation
of the Satrix Inclusion & Diversity ETF (source portfolio) with the
Satrix SA Inc AMETF (target portfolio) and to provide you with
sufficient information to vote on this proposal – including your rights
as an investor and the impact this will have on your investment.
In terms of Section 99 of the Collective Investment Schemes Control
Act, 45 of 2002 ("the Act"), the proposed amalgamation will proceed if
the majority of investors vote in favour of the amalgamation by way of
the enclosed ballot. Absence of a response will be regarded as a vote
in favour of the amalgamation.
The amalgamation ballot is conducted at the request of Satrix Managers
(RF) (Pty) Ltd ("Satrix"), FSP 15658, the manager of the Satrix
Collective Investment Scheme in Securities.
Reason for the Proposed Amalgamation
Satrix intends to amalgamate the Satrix Inclusion & Diversity ETF (JSE
Code: STXID) into the Satrix SA Inc AMETF (JSE Code: STXSAI).
The Satrix Inclusion & Diversity ETF was built around the principle of
rewarding companies that actively embrace inclusive practices and
promote gender and racial equity. While this remains a worthy investment
ethos, market adoption of this thematic approach has been limited, as
reflected in the fund's smaller size and lower liquidity profile.
The Satrix SA Inc AMETF provides a powerful alternative: it captures
companies primarily earning their revenue within South Africa, many of
which are deeply embedded in domestic development, employment,
transformation, and service delivery. This makes the Satrix SA Inc
AMETF an authentic and more investable expression of national inclusion
and economic contribution, with stronger fundamentals and practical
advantages for long-term investors.
Key commonalities are depicted in the table below:
Category Satrix Inclusion & Satrix SA Inc AMETF
Diversity ETF
Thematic Focus Corporate inclusion and SA economic inclusion
diversity via domestic revenue
exposure
Equity Universe JSE-listed companies JSE-listed companies
with diversity with >25% local revenue
credentials
Local Impact Orientation Rewards internal Rewards economic
corporate diversity and activity and revenue
transformation generation in SA
Index Review Frequency March and September March, June, September
& December
Portfolio Construction Rules-based index Rules-based index
methodology methodology
Compliance & Governance Follows ESG and Utilises transparent
diversity principles revenue-based
weightings
Benefits to the proposed amalgamation
a) Broader but Aligned Exposure to Local Impact: The Satrix SA Inc
AMETF tracks a custom-built index focused on the 50 largest and most
liquid JSE-listed companies earning more than 25% of their revenue
within South Africa. Many of these businesses play a central role in
job creation, B-BBEE implementation, and regional economic development,
delivering tangible inclusion beyond internal policies while also
touching on some of the pillars and metric considered in the
construction of the Satrix Inclusion & Diversity ETF.
b) Superior Liquidity & Scaling: The Satrix Inclusion & Diversity ETF
remains small in AUM (currently at R25mil) and can be vulnerable to
liquidity constraints. The Satrix SA Inc AMETF is currently at R594mil
and by design, it invests in highly liquid, large- and mid-cap stocks,
ensuring better tradability, lower spreads, and greater institutional
viability.
c) Revenue-Based Index Methodology: The Satrix SA Inc AMETF applies a
transparent revenue-weighting scheme, upweighting companies based on
the share of income earned locally. This rewards businesses directly
participating in and benefiting from SA's domestic economy, furthering
the goals of local empowerment and inclusivity.
d) Efficient Portfolio Construction: The Satrix SA Inc AMETF limits
stock weightings to 10%, maintains exposure to diverse sectors, and
avoids high turnover through quarterly reviews and rebalancing. These
features translate to cost efficiency and index stability without
compromising on exposure to impactful South African companies.
Performance Comparison
The below statistics are based on the historical performance of the
indices that these ETFs track.
To Feb 2026 Satrix Inclusion & Satrix SA Inc Index
Diversity Index
YTD 18.9% 18.2%
1 Year 52.8% 48.8%
3 Years 19.3% 22.0%
5 Years 18.3% 18.6%
10 Years 12.4% 10.5%
Volatility p.a (10 Years) 16.2% 17.6%
Figure 1: Total returns to the end of Feb 2026. Source: JSE, Satrix
While the Satrix Inclusion & Diversity Index has delivered slightly
stronger returns over shorter periods such as YTD (18.9% vs. 18.2%) and
1-year (52.8% vs. 48.8%), the Satrix SA Inc Index demonstrates stronger
medium-term consistency, outperforming over 3 years (22.0% vs. 19.3%)
and 5 years (18.6% vs. 18.3%). This reflects the strong rebound and
growing influence of domestically focused companies in the South
African economy.
Although the SA Inc Index exhibits marginally higher long-term
volatility (17.6% vs. 16.2%), this is balanced by its ability to capture
domestic economic recoveries more effectively. For investors, this
reinforces the case for SA Inc as a more forward-looking and locally
responsive investment strategy, positioned to benefit from improving
South African economic conditions while maintaining competitive long-
term returns.
The below show the differences in sector weights:
Figure 2: Sector weights, up to end of Feb 2026. Source: Satrix, JSE
The SA Inc Index significantly overweight financials, reflecting the
dominant role that domestically focused banks and insurers play in the
South African economy. By shifting to the SA Inc Index, investors gain
greater exposure to sectors that are more directly sensitive to local
economic cycles, especially financials and consumer discretionary,
thereby potentially benefiting more directly from South Africa's
economic momentum. The sector exposures in the Satrix SA Inc AMETF
enhance its purity of exposure to the domestic economy, in line with
the fund's strategic objective.
While the Satrix Inclusion & Diversity ETF aimed to capture corporate
social progress, the Satrix SA Inc AMETF does so through a more macro-
inclusive lens—by investing in companies whose revenues reflect
engagement with local consumers, businesses, and government. These
companies are, by definition, exposed to South Africa's socio-economic
climate and have vested interests in stability, transformation, and
growth.
The move to the Satrix SA Inc Index does not dilute the thematic
integrity of Satrix Inclusion & Diversity Index, but elevates it to a
broader scale, aligning with real-world impact and tangible performance
drivers.
Differences in Investment Policies
Satrix Inclusion & Diversity
Satrix SA Inc AMETF Changes and Impact
ETF
3.1 The investment objective 4.1 The portfolio is an The Satrix Inclusion
of the portfolio shall be to actively managed exchange & Diversity ETF
track the FTSE Satrix South traded fund (AMETF) with the tracks the FTSE
Africa Inclusion & Diversity primary objective to achieve Satrix South Africa
Index (hereinafter referred long-term capital Inclusion & Diversity
to as "the Index") as closely appreciation by investing Index by buying
as possible, by: mainly constituent
in a diversified portfolio of securities in the
3.1.1. buying only equity securities with a same weighting as the
constituent securities in the South African Incorporated index.
same weightings in which they ("SA Inc") theme. As a
are included in the Index and further objective, the The Satrix SA Inc
selling only securities which securities held by the AMETF is an actively
are excluded from the Index portfolio shall be managed to managed ETF, that
from time to time as a result generate income for the follows and
of periodic Index reviews or benefit of investors. implements the
corporate actions or which proprietary Satrix SA
are required to be sold to 4.2 The portfolio seeks to Inc Index. The
ensure that the portfolio capture the SA Inc theme by Satrix SA Inc Index
holds securities in the same including in its universe the targets the largest
weighting as they are largest and most liquid and most liquid
included in the Index. stocks in companies whose companies whose
earnings and growth are earnings and growth
3.2. The portfolio shall not predominantly influenced by are predominantly
buy or sell securities for the South African economy and influenced by the
the purpose of making a its specific South African economy
profit nor for any purpose conditions. and its specific
other than tracking the conditions.
Index. 4.3. The portfolio may
utilise listed and unlisted While the investment
3.3. It is anticipated that derivatives, in accordance strategies of the
assets in liquid form will with the provisions of the underlying indices
not form a substantial part Act and the Regulations target different
of the Portfolio's assets. thereto, as amended from time objectives, they are
However, any liquid assets to time, in order to achieve common in that they
that the Portfolio holds may the portfolio's investment both offer thematic
be invested in short term objective. and differentiated
investments such as banker's return profiles
acceptances and certificates 4.4. The portfolio may hold relative to a broad
of deposit. assets in liquid form as market index such as
permitted by the Act and the the FTSE/JSE Top 40
3.4. As a further objective, Regulations thereto from time Index or FTSE/JSE All
the securities held by the to time. It is not Share Index.
portfolio shall be managed to anticipated that ancillary
generate income for the assets in liquid form will
benefit of investors. form a substantial part of
the portfolio's assets.
3.5. Investors can obtain
participatory interests in 4.5. The portfolio may invest
the portfolio on the in participatory interests or
secondary market or by any other form of
subscribing for new participation in portfolios
participatory interest in the of collective investment
portfolio on the primary schemes or other similar
market. In order to achieve schemes as the Act may allow
this objective the manager from time to time, and which
may, subject to the Act and are consistent with the
the Deed, create and issue an portfolio's investment
unlimited number of objectives
participatory interests in
the portfolio. 4.6. Nothing contained herein
shall preclude the Manager
3.6. The portfolio will not from varying the ratio of
be managed according to securities to best position
traditional methods of active the portfolio to achieve its
management, which involve the objective in a changing
buying and selling of economic environment or
securities based on the market conditions or to meet
economic, financial and the requirements, if
market analysis and investing applicable, of any exchange
judgement. Instead, the recognised in terms of the
investment objective and Act and from retaining cash
style will be full or placing cash on deposit in
replication of the Index. As terms of the Deed and any
a result, the financial or supplemental deeds thereto.
other conditions of any
security included from time 4.7. Investors can obtain
to time in the Index will not participatory interests in
result in the elimination of the portfolio on the
the securities from the secondary market or by
portfolio unless the subscribing for new
securities are removed from participatory interest in the
the Index itself. portfolio on the primary
market. In order to achieve
3.7. The portfolio will this objective the manager
acquire and hold a portfolio may, subject to the Act and
of securities that represents the Deed, create and issue an
all of the securities of the unlimited number of
Index in the same weighting participatory interests in
as in the Index. However the the portfolio.
Manager shall also be
entitled, in its discretion
and only on a temporary
basis, to employ such other
investment techniques and
instruments as will most
effectively give effect to
the object or the investment
policies of the portfolio.
3.8. The composition of the
portfolio will be adjusted
periodically to conform to
changes in the composition
and weighting of the
securities in the Index so as
to ensure that the
composition and weighting of
the scheme's portfolio are a
reflection of the composition
and weighting of the
securities contained in the
Index.
Portfolio Benchmark Portfolio Benchmark
FTSE Satrix South Africa Satrix SA Inc Index The Satrix Inclusion
Inclusion & Diversity Index & Diversity ETF
(previously known as focuses on investing
Refinitiv Satrix South Africa in companies that
Inclusion & Diversity Index) prioritise inclusive
practices and
diversity, while the
Satrix SA Inc AMETF
targets companies
with significant
domestic revenue and
economic involvement
in South Africa.
SA Inc is a more
commonly recognized
and understood
investment strategy
or theme than
inclusion and
diversity.
Risk Profile Risk Profile
Aggressive Aggressive Although both risk
profiles are
classified as
aggressive, the
Satrix Inclusion &
Diversity ETF derives
its exposure from
companies selected
primarily for
corporate inclusion
and diversity
characteristics,
which may include
firms with both
domestic and offshore
revenue streams. This
could result in more
diverse economic drivers.
The Satrix SA Inc
AMETF focuses
explicitly on
companies earning a
significant portion
of their revenue
within South Africa,
which could increase
sensitivity to local
economic cycles,
fiscal conditions,
interest rates, and
domestic policy
developments.
Distribution Methodology Distribution Methodology
Distributing Quarterly Distributing Quarterly No change
Total Expense Ratio Total Expense Ratio Lower Total Expense
Ratio
46 bps 35 bps
Impact of Change – Additional Information
Satrix Inclusion &
Description Diversity ETF Satrix SA Inc AMETF
JSE Code STXID STXSAI
ASISA South African – Equity – South African – Equity – SA
Classification SA General General
Risk Profile Aggressive Aggressive
Currency Risk No No
South African Listed South African Listed
Asset allocation Equities - 100% Equities - 100%
FTSE Satrix South Africa
Benchmark Inclusion & Diversity Satrix SA Inc Index
Index
Index Calculator LSEG Riscura
Fund Denomination ZAR ZAR
TER 0.46% 0.35%
Satrix Manager (RF) Pty Satrix Managers (RF) Pty
Index Owner Ltd Ltd
Rebalancing dates Semi-Annual Quarterly
Distribution Distributing Quarterly Distributing Quarterly
Max number of
holdings 30 50
AUM R23mil R629mil
How the Amalgamation Impacts Your Investment:
Replacement participatory interests
When the source portfolio, Satrix Inclusion & Diversity ETF is
absorbed into and amalgamated with the targeted portfolio, the Satrix
SA Inc AMETF, investors will be issued with replacement participatory
interests (shares) in the new amalgamated fund. The replacement
shares will be equal in market/monetary value to the shares held
prior to the amalgamation, although the number of shares held may
change. The Satrix Inclusion & Diversity ETF (source portfolio) will
cease to exist.
This is in accordance with Section 99 (3) (a) of the Act, which
stipulates that on the effective date, every investor:
"…shall… hold in the new scheme or portfolio, such participatory
interests with an aggregate money value which is not less than the
lower of the net asset value or market value, as may be fair and
reasonable in the circumstances, of the participatory interests which
such investor, immediately before the date on which the proposed
transaction becomes effective, held in an original scheme or
portfolio;"
Details of the distribution and amalgamation salient dates will be
announced after Financial Sector Conduct Authority ("FSCA") ("the
Authority") approval.
Transaction Costs
The change would result in once-off trading costs being incurred within
the source portfolio when the portfolio is liquidated to align with the
targeted portfolio.
Taxation implications
Satrix does not provide tax advice, but there should be no tax impact
for investors who remain in the fund.
Special distribution
All accrued income in the source portfolio will be distributed before
the transfer takes place.
Effective date and approval of change
The effective date for the proposed amalgamation of the funds will be
communicated via SENS, contingent upon a successful ballot and receipt
of the requisite approval from the FSCA.
Expected timeline for the implementation of the proposed
amalgamation:
Weekday Action
Thursday, 5 August 2025 Approval from FSCA
Friday, 29 August 2025 Request STRATE register holdings (Cut-off
date for investors on record to be balloted
as at 29 August 2025)
Wednesday, 3 September Release of SENS announcement
2025
Wednesday, 15 October Deadline for returned ballots (30 business
2025 days after SENS announcement)
Monday, 20 October 2025 Submission of auditors report to FSCA
Tuesday, 21 October 2025 Submission of final deed to the FSCA
Friday, 31 October 2025 FSCA approve Supplemental Deed
Tuesday, 4 November 2025 SENS announcement confirming the results of
the ballot and declaration announcement
Action Required
1. Please read this circular on the proposed amalgamation, your rights
as an investor and the impact this will have on your investment.
2. Please complete the enclosed ballot form and email it directly to
our external auditors, KPMG, at satrixballotSTXID@kpmg.co.za on or
before 12 June 2026. If you do not participate in the ballot in
time, you will be deemed to have voted in favour of the
amalgamation.
3. Please do not include any other instructions regarding your
holdings with your ballot form, e.g., requests for purchases,
switching instructions, etc. Your ballot form will go directly to
our auditors and, should such instructions be sent to the auditors,
we cannot guarantee that any instruction subsequent to the
commencement of the ballot process will be effected.
4. If you are no longer invested in the Satrix Inclusion & Diversity
ETF, no action is required.
Your Rights As An Investor
The rights of investors are firmly entrenched in the Act. In terms
of Section 99 of CISCA, as read with Clause 59 of the Deed of the
Satrix Collective Investment Scheme in Securities, the Authority
requires that:
• All investors in the affected source portfolios will be informed
in writing on the details of the proposed amalgamation of the
portfolios.
• All source portfolio investors are given an opportunity to vote
in favour of, or against, the proposed amalgamation.
• An independent auditor will verify the outcome of the ballot.
• All investors will be notified in writing of any proposed
material changes to the collective investment schemes and
portfolios in which they hold units, and
• All investors will be given the opportunity to vote on the
proposed changes.
If investors do not respond before the cut-off date, they will be
deemed to have voted in favour of the change.
If the ballot is successful and you do not want your investment to be
included in the amalgamation, you may elect to sell your securities
at any time before the amalgamation effective date and withdraw your
funds at the prevailing market price of the Satrix Inclusion &
Diversity ETF. Please note that such sale transaction may trigger a
CGT event and that you may be liable for CGT at your next income tax
assessment, and such transaction may also attract brokerage cost.
If you choose not to sell your funds before the effective date of the
amalgamation, the amalgamation proposals, as set out in this letter
(if approved by investors), will automatically apply to your
investment.
Should you require further information on the proposed change, you
can also email us at info@satrix.co.za.
JSE Sponsor
Vunani Sponsors
29 April 2026
Date: 29-04-2026 10:33:00
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The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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